by "XJDano" (xjdano)
Published 04/15/2017 at 10:38
by "XJDano" (xjdano)
Published 04/15/2017 at 10:38
Tags: 418
; real estate
; Houses
STARS: 0
Long story short, I’m screwed.
I typed all this the other day and I’m frustrated. But this is my life. I’ve made some bad Financial dicisions because I didn’t really know any better.
A guy who buys houses and fixes them to rent says he would be a player at $50K, maybe. Damn it. I could also put money into the house and sell it myself but everything will cost money and likely lose money even on the end sale.
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"PS9" (PS9)
04/15/2017 at 10:52, STARS: 1
Don’t sell yourself short. People don’t want to buy anything short. Short is out, long is in. Sell yourself long. Make sure everyone knows you’re longer than the competition and there’s no way you can lose.
"LongbowMkII" (longbowmkii)
04/15/2017 at 10:54, STARS: 0
I only know a bit from looking at buying a short sale. I know it was potentially a months long process where anything and everything is up in the air, which naturally scares away a lot of buyers/lenders driving the price down. I don’t think there’s much upside for anyone on the selling side except for being able to cut all ties.
"XJDano" (xjdano)
04/15/2017 at 10:55, STARS: 0
That’s what I need to do. I bought my second house as a short sale, and it took 3 months.
Never on the selling side though.
"XJDano" (xjdano)
04/15/2017 at 10:59, STARS: 0
That sounds great. But reality hits you hard bro.
"nermal" (nermal)
04/15/2017 at 11:02, STARS: 0
So, you have a $108k house that you are considering selling for $50k? Did I read that right? That sounds like a terrible move.
Assuming there is a mortgage on the house, call your bank. They don’t want to do a short sale, or a foreclosure. Those are expensive and a lot of work and the bank always loses. See if they will allow you to refinance to lower the payment, or if there’s anything else they can do to help.
Then get a new tenant.
"XJDano" (xjdano)
04/15/2017 at 11:06, STARS: 0
Well I owe 97, want to just get rid of it. I can’t take that much of a loss. The bank will have to.
"AfromanGTO" (afromangto)
04/15/2017 at 11:12, STARS: 0
Don’t if you can avoid it. It will be very hard to get a loan for a few years.
"XJDano" (xjdano)
04/15/2017 at 11:13, STARS: 0
I’m fine with with that. I have a main house that’s nice and a car loan already.
"Highlander-Datsuns are Forever" (jamesbowland)
04/15/2017 at 11:13, STARS: 0
If you go to short sale you are basically giving the house to the bank and ruining your credit for the next 5-10 years.
"XJDano" (xjdano)
04/15/2017 at 11:17, STARS: 0
Yup. I think I’d be fine with that. That house is a disaster and I’m in over my head and don’t want to dig any deeper.
"E92M3" (E46M3)
04/15/2017 at 11:19, STARS: 0
Why not just find a new tenant? You should be able to get enough to cover the mortgage payment for that house. Sounds like you just didn’t have enough of an emergency fund to cover repairs. You’ve put too much into it now to just walk away at a loss.
If you still want to get rid of it, checkout roofstock.com. They probably won’t give you what you want for it though.
Seriously, your biggest expenses are behind you. There’s always repairs that pop up, but the largeest ones are already out of the way, and won’t need replacing again for at least a decade or 2.
"Dr. Zoidberg - RIP Oppo" (thetomselleck)
04/15/2017 at 11:26, STARS: 0
Why short sale? Can’t you just sell it normally? Are you behind on payments?
"XJDano" (xjdano)
04/15/2017 at 11:27, STARS: 0
There are larger problems in that house than just not having a kitchen. I know them all and I’d rather just walk away.
Imagine pouring a back patio really crappy then using that patio as the garage foundation. Of course it drains twords the garage and has rotted out the 2x4 wall base and bottom studs. Plus clay drain pipe clogs with roots. Needs bathroom redone. So much.
"XJDano" (xjdano)
04/15/2017 at 11:28, STARS: 0
I’m not yet, it was a rental, got trashed, needs tons of repairs.
"XJDano" (xjdano)
04/15/2017 at 11:29, STARS: 0
I also have another house I live at and this is vacant.
"Dr. Zoidberg - RIP Oppo" (thetomselleck)
04/15/2017 at 11:29, STARS: 0
Wouldn’t it make more sense to fix it up and just immediately sell it?
"XJDano" (xjdano)
04/15/2017 at 11:32, STARS: 0
I dont really know. It’ll take a ton of work, and I do that know if I’m committed to that. Even at the end I don’t think I can get what I owe from it. So, money to e, materials to make it live able, the. More money to cover the sale. I’m sort of at a loss any way I look at it.
Follow the links and it’ll show how shitty the house was. It’s almost at a neutral state but tons of work to go.
"Dr. Zoidberg - RIP Oppo" (thetomselleck)
04/15/2017 at 11:37, STARS: 5
Scenario 1: sell house at a huge loss (short sale), fuck your credit, be completely unprepared for an untimely major financial decision because you gambled thinking you could go 5-10 years without taking out a loan.
Scenario 2: fix it, sell it at a similar or smaller net loss (who knows, it might be a wash), maintain your credit, etc.
Scenario 2 is something you’ll dread today. Scenario 1 is something you may regret for many years. My two cents.
"AfromanGTO" (afromangto)
04/15/2017 at 11:44, STARS: 0
Put it on the market, and see what you could get. List it for 120K or 135K, and let them work you down.
"XJDano" (xjdano)
04/15/2017 at 11:47, STARS: 0
Yeah kind of fucked either way. $700/month plus whatever I have to put into it this summer ($5,000 or more) . And if I miss the market this year how many months will it have to sit vacant???
Life is full of bad decisions, I’ve already made quite a few. I may have to sell some cars...
"XJDano" (xjdano)
04/15/2017 at 11:49, STARS: 0
Zillow estimates 127 ready to go, it’s such a shit hole it’ll take about the difference to make that back up. And maybe break even.
"AfromanGTO" (afromangto)
04/15/2017 at 12:08, STARS: 0
List the shit hole for 130-145K, and see what happens. Tell whomever you get as an agent to make sure they say you are a motivated seller. And make sure you get a decent agent. Investors like to get houses like this. Make sure you list all of the positives about it, and the location.
"E92M3" (E46M3)
04/15/2017 at 12:21, STARS: 0
Then it sounds like foreclosure or short sale is your only choice. I don’t think you’ll ever get near payoff for it, unless it’s buttoned up, and tidy. Time to call your bank, and let them choose what option they want to pursue. Someone will love to get that at half it’s value on the courthouse steps.
I know it sucks. I would be half tempted to put an Ikea kitchen in it, and rent it for $700 a month. Then tackle the drain pipe after that tenant moves, and the garage between the 2nd and 3rd renters.
"XJDano" (xjdano)
04/15/2017 at 12:26, STARS: 0
I’ll do a follow up post tomorrow with everything wrong with the house and why I’d like to just walk away. It makes me sad and sort of depressed, but this won’t kill me. I’ve got a good support from my wife and hopefully this will be over by end of the year.
F- it I’m going to go shoot some guns.
"E92M3" (E46M3)
04/15/2017 at 12:34, STARS: 0
If it’s that bad.. I hate to say it, but just walk away. Just make sure you don’t need to apply for any credit for the next 7 years. Short sales take a longggg time. No sense paying utilities or anything for the 9-12 months it would take. Roofstock won’t work here. It’s mostly for distressed properties (that are often inherited), that people don’t want to put the money into that is required to get market value.
"XJDano" (xjdano)
04/15/2017 at 12:38, STARS: 0
I really think I’m already set. But just looking forward to better days with that property behind me.
A real estate agent has a interested buyer that I may walk into the bank with a cash offer and it may not be as bad as I think it is. But I just want to focus on my own house, family, life.
"Toby F., Manager" (itsmefromhr)
04/15/2017 at 13:19, STARS: 0
There’s a local real estate company here in San Diego that used to run commercials all the time (maybe they still do, I just don’t watch TV much anymore) that would work with you in rehabbing your home when you decide to sell.
Essentially you would hire and contract them to be your realtor, they would pitch the cash to fix your home, they would then list and sell, and would then recoup whatever they invested along with a percentage of the sale of the home.
Maybe something similar exists in your area?
EDIT: I found the company: http://renovationrealty.com/
"merged-5876237249235911857-hrw8uc" (merged-5876237249235911857-hrw8uc)
04/15/2017 at 14:55, STARS: 1
Electrical up to code? I mean if not, then you could be looking at a total loss... I mean all it takes is one bad outlet to spark and woah boy, you could have yourself a pretty bad fire or something like that....
I shouldn’t suggest that, but I’ve been there with our house at one time. We were upside down and the market sucked. But we pulled through and finally got to the point it’s actually worth something over what we owe. If there is anyway you can avoid the short sale, that’d be the way to go. Get it back in rentable shape and with basics and make sure you get a healthy deposit from the next tenants. Or list it And see what happens. Do you have any equity in your main home? Anybody you can beg or borrow money from for short term?
"XJDano" (xjdano)
04/16/2017 at 09:06, STARS: 0
I have equity in main home. I actually bought it as a short sale and walked into about 30K of equity, and have a home line on it, but haven’t borrowed anything against it yet.
My ex girlfriend parents pulled that trick, remodel the bathroom, put in jacuzzi tub, old house new wiring, burn the house partly. I think it was her mom being jealous when she apparently agreed to an open marriage.
This house doesn’t need a whole lot for house, but needs for garage and redo of bsck patio.
"merged-5876237249235911857-hrw8uc" (merged-5876237249235911857-hrw8uc)
04/16/2017 at 17:12, STARS: 0
Might be best to borrow against the equity and save the 2nd place. Then try selling or past resort, rental again? Better than torpedoing your credit. That can haunt you in ways you probably don’t realize. Insurance, other credit cards and such, vehicle purchases. Tough to say, but if you can avoid it, I’d do anything I could.
"XJDano" (xjdano)
04/16/2017 at 17:17, STARS: 0
Yeah I’ve been dreading the actual work, but time to buckle down and just doin it.
I think I’ll keep the opposite lock updated on my losing landlord blog.
There are enough assholes in the world. I’m better than most of them.